Published on June 30, 2006 - The government's revised land values in the North have been condemned by the Chiang Mai-Lamphun Real Estate Association, which claims northern residents are being price out of their neighbourhoods.
"The increased official appraisal price has triggered rises in provincial land prices to a point where they are out of touch with reality and likely to put a halt to investment," said Nont Hiranchate, of the association in Chiang Mai.

He cited the escalation of land prices in tambon Paton in Chiang Mai's Muang district - from around Bt6,500 to Bt12,000-15,000 a square wah - as an example.

"Most housing estates target middle and working class people but the price has climbed enormously and become unaffordable to them," Nont said.

The increased appraisal standard price might be an obstacle to industry growth, which had been on the rise in Chiang Mai and Lamphun.

A Finance Ministry report shows that 115 housing estates have been launched offering almost 22,000 homes in the first quarter of this year.

Land trade fees collected in Chiang Mai in May stood at more than Bt48 million, emphasising the real estate boom.

"The introduction of several mega projects in Chiang Mai is the main factor driving an increase in real-estate investment," Nont said.

Hang Dong district, near the airport with a department store and theatre, has become the heart of Chiang Mai's property industry.

"The average land price in Hang Dong stands at Bt5,500-12,500 a square wah and most of the housing estates in the district are luxurious," Nont said.

However, many other housing estates are mushrooming in neighbouring San Sai and Doi Saket districts as a result of improvements to the city's ring roads and the construction of underground tunnels to ease congestion.

Atsadaporn Kamthai
Citylife, Chiang Mai